Qualitative Analysis

File / Reference No: 10000/100/10/1

British American
Borrower Name
Tobacco Bangladesh

Group Name (if any) BAT

92%
Industry Name 14. Other Industries
Latest CIB Status Standard
Audit Status Audited
Auditor Name KPMG 36.75
Analyst Name, Designations Sadia Hossain
Verifier Name, Designation YL
Date of Analysis 20/10/2023
Date of Financials 31-12-2022
Qualitative Indicators (40)

Criteria Paraeter Score Actual Paramenter Score Obtained

G Performance Behavior 10 10
Performance behavior with lending
G.1
banks

How many times the borrower was

G.1.1 O time 5
adversely classified in last 3 years
[ Aversely classified means the
borrower's loans classified as per BB
O time 5
loan classifications policy i.e SS, DF,
BL]
1 time 4
2 times 3
3 times 1
>3 times 0
How many times the borrower's loans
G1.2 was rescheduled/ restructured in last 0 time 4
3 years
0 time 4
1 time 3
2 times 2
3 times 1
>3 times 0
Performance behavior with
G.2 Yes 1
suppliers/ Creditors
Did The Borrower Pay Its Suppliers/
Yes 1
Creditors Regularly In Last 1 Year
No 0
H Business and Industry Risk 7 6.75
H.1 Sales Growth >10% 2
* Sales growth means annual sales
>10% 2
growth

The formula for calculating sales

5%-10% 1
growth is [(current year sales -
previous year sales)/ previous year
sales]*100 Less than 5% 0

H.2 Age of Business >10 years 2

The number of years the borrower >10 years 2
engaged in this line of business 7 to 10 years 1.5
 5 to 7 years 1
4 to 5 years 0.5
<4 years 0

H.3 Industry Prospects Stable 0.75

Critical assessment of 5 (five) years

Growing and Low
prospect of industry and borrower's 1
Volatility
sales volatility
* Volatility denotes sales volatility Stable 0.75
Growing but High
0.5
Volatility
Declining 0
Long-Term External Credit Rating
H.4 1 2
of the Borrower
1 2
Rating Grade should be assigned in line
with BB Rating Mapping as per BRPD
circular 18/2014 on Risk-Based Capital 2&3 1.5
Adequacy in line with Basel III (see
annex: Rating Mapping)
>3 0.5
Unrated 0
I Management Risk 7 7
More than 10
years in the
I.1 Experience of the Management 2
related line of
business
Quality of the management based on
More than 10 years in
total number of years of experience of
the related line of 2
the senior management in the
business
Industry.
* Senior Management means MD and 5–10 years in the
1
next two tiers related line of business
Less than 5 years 0
0
Yes, with good
I.2 Existence of Succession Plan capability of 2
successor

Yes, with good

2
capability of successor
Yes, but questionable
1
capacity of successor
No successor 0

Recognized
I.3 Auditing Firms 2
Auditors
Recognized Auditors 2
BSEC listed auditors are considered as Other Auditors 1
recognized
Un audited 0

Change In External Auditors In Last

I.4 Yes 1
4 Years
Yes 1
No 0
J Security Risk 11 8
 Registered
Hypothecation
J.1 Primary Security 1.5
(1st Charge/1st
Pari Passu Charge)

Fully Pledged Facilities 2

Registered
Hypothecation (1st
1.5
Charge/1st Pari Passu
Charge)
2nd Charge/Inferior
1
Charge
No Security 0

Registered
Mortgage On
J.2 Collateral Municipal 2
Corporation/Prim
e Area Property

Registered Mortgage On
Municipal
2
Corporation/Prime
Area Property
Registered Mortgage On
Pourashava/Semi-
1.5
Urban/ Union Parishad
Area Property
Equitable Mortgage Or
No Property But Plant
1
And Machinery As
Collateral
No Collateral 0
J.3 Eligible Collateral Coverage 70% to 80% 3
The formula of eligible collateral
coverage is [eligible collateral / total >100% 5
loans]
80% to 100% 4
70% to 80% 3
* Eligible collateral should be
50% to 70% 2
determined as per BRPD circular no 14
issued on September 23, 2012 (Para 07,
<50% 0
Page 10). (see annex: Eligible Collateral)

Strong Corporate
J.4 Type of Guarantee 1.5
Guarantee

Government Guarantee
2
and/or Bank Guarantee

Strong Corporate
Strong Corporate Guarantee means the 1.5
Guarantee
credit rating of the guarantor should be
at least 1 or 2 as per BB rating mapping
mentioned in BRPD circular 18/2014 on
Risk Based Capital Adequacy in line with
Basel III.
 credit rating of the guarantor should be
at least 1 or 2 as per BB rating mapping
mentioned in BRPD circular 18/2014 on
Risk Based Capital Adequacy in line with
Personal Guarantees or
Basel III.
Corporate Guarantee
1
without Strong
Financial Strength

No support/guarantee 0

K Relationship Risk 3 3

More than 3 years More than 3 years

K.1 Account Conduct Accounts with Faultless 3 Accounts with 3
Record Faultless Record

Less than 3 years

Accounts with faultless 2
record
Accounts having
satisfactory dealings
1
with some late
payments.
Frequent Past dues &
Irregular dealings in 0
account

L Compliance Risk 2 2
Compliance with environmental
L.1 Yes 1
rules, regulations and covenants
Yes 1
No 0

Good Corporate
L.2 Corporate Governance 1
Governance

Good Corporate
**Independence of Management 1
Governance

Questionable Corporate
0
Governance
Total 40 36.75
Percentage 91.9%